Question

HELP PLEASE!!!

1. How does an increase in unemployment negatively affect our government?


2. When a business finds it necessary to layoff some employees (due to slowing sales), what positive effects might this have for the business?


3. Mr. Smith was disabled in a car accident in 1995 and has not been able to work since. Is Mr. Smith included in the unemployment statistics? Why or why not?


4. Explain how dishonest workers and discouraged workers affect employment statistics.

5. For the following situations, identify the type of unemployment each represents.

a. Because of the decline in the U.S. birth rate, baby clothes manufacturers are laying off workers.

b. Bill decided to relocate to Texas. He quit his present job and found a new job in Texas three weeks later.

c. As interest rates continue to rise, the sale of new homes decreases. This has caused an increase of unemployed construction workers.

d. As the fall harvest ends, agriculture unemployment increases.

f. The state of Missouri has enacted a law stating that no one under the age of 21 can work in an establishment that sells liquor. Mark, an 18-year-old, was working as a waiter in a restaurant that sells alcoholic beverages. He can no longer work at the restaurant.

Answer 1

Answer :

1. When unemployment rates are high and steady, there are negative impacts on the long-run economic growth. Unemployment wastes resources, generates redistributive pressures and distortions, increases poverty, limits labor mobility, and promotes social unrest and conflict.

Answer 2

Answer:

a. cyclical unemployment

b. fictional unemployment

c. cyclical unemployment

d. seasonal unemployment

f. induced unemployment

Explanation:

a. This is an example of Cyclical unemployment as a result of the business cycles referred to earlier. There is a seemingly natural cycle of good economic times and poor times. During these poor times of recession or depression, businesses decrease their outputs, which require fewer employees, thus causing an increase in unemployment.

b. Bill is a fictional unemployed, which means that he decided to quit his job and get a new one.

c. This again is an example of cyclical unemployment. In this case, construction workers aren't building as many houses due to the decrease in home sales.

d. This is an amazing example of seasonal unemployment. This may happen because some products/businesses are in demand during only part of the year. In this case, the demand for employees drops exceedingly.

f. This is all the government's fault! Induced employment got little mark good. This happened because of new government law.

- madison